Find the Right Loan for Home Renovations

Stock Couple Doing Home Renovations

Home renovations are a popular option for homeowners planning to make improvements and people looking to buy a home.  

The reasons can be practical (the roof needs repairs, or the plumbing needs to be replaced) or they might be personal preferences (the kitchen hasn’t been updated since 1972 or the windows are drafty). Whatever the reasons, a home renovation can be one of the best ways to improve and customize a house, making it more “your home.”  

“You may not have built this home, but you get to add your touches in the renovation to make the home your own,” says David Schuld, a mortgage loan originator with Alaska USA Mortgage Company.  “And if you are replacing major items such as a heater or a roof, it is nice to know those items will be new going into the future.”

New Homebuyers Renovating Older Homes

Renovations can also help new homebuyers, many of whom are purchasing older homes with the intention to renovate as they face a market with housing  inventory shortages and rising prices. 

“Often the buyer is getting a home at a reduced price because of repairs needed,” says Schuld. “All homes age and having to replace a major part of the home that eventually will need attention is a nice peace of mind to have.”

Shopping for Renovation Loans

Renovation loans can be a necessity for a home in need of repairs, even if it is not a fixer-upper. Alaska Housing loans let you finance the cost of buying the home and fixing it up with one closing, meaning you will not need to apply for a home equity loan or another type of loan to pay for your renovations. You may even find yourself with a significant amount of equity if your improvements have increased the home’s value. 

Mortgage loans are designed for you to shop and compare so you can get the best deal. When shopping for renovation loans, ask for a mortgage loan with a renovation feature

“There are benefits to having an AHFC loan, including the ability to have a borrower assume your loan and a streamlined process to refinance,” says Schuld. “AHFC rates are always very competitive and very good for first-time homeowners.” 

Ready to Buy a Home?

Seek advice from your local real estate professionals to find the right home for you and discuss with your mortgage lender which loan product works best for your financial situation. You can find an AHFC approved mortgage lender here

You can also learn more about the process of purchasing a home by joining us for a homebuyer education class. Click here to learn more about the no-cost courses and how to register.